In the video above, I take a look at the technicals for the EURUSD, USDJPY and GBPUSD. The EURUSD is the biggest mover. The GBPUSD had a run lower off weaker data (GDP, Industrial production) but snapped back higher. The USDJPY has moved below the cluster of MAs tilting the bias lower.
Later, the Washington Post said US intelligence officials are increasingly worried that Israel might carry out a strike on Iran without prior approval from Washington. A regional diplomat expressed deep concern, warning the situation is more dangerous now than ever.
ECB's Schnabel signaled that the monetary policy tightening cycle is nearing its end, with inflation stabilizing and financing conditions no longer restrictive. Despite ongoing trade tensions, the growth outlook remains broadly stable. She expects headline inflation to ease in early 2026 due to base effects, while core inflation, though still high, is on a declining path. The ECB sees limited impact from trade diversion with China and emphasizes that inflation expectations remain anchored. The strong euro is seen as confidence-driven rather than rate differential-based, and overall, monetary policy is considered well-positioned.
ECBs Miller said that inflation is likely to stay around 2% in the near future.
US yields are lower as well supporting the USD decline:
2 year 3.911%, -3.3 basis points5-year yield 3.971%, -4.0 basis points10 year yield 4.367%, -4.7 basis points30 year 4.857%, -5.2 basis pointsTwo cuts are expected by the Fed by the end of the year with the first cut nearly priced in for September.
This article was written by Greg Michalowski at www.forexlive.com. Read More Details
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